Purpose
To provide a simple, hassle-free, and asset-backed term loan to any lawful trading, servicing, manufacturing, or processing activity. This excludes speculative activity and real estate for the purchase of plant & machinery/equipment, etc., for business activities and for the build-up of fixed assets like construction/modernization of business premises, factory/offices/shop/godown, etc., on an ownership basis required for running the business.
Eligibility
All existing firms (Proprietorship, Partnership, Company) having satisfactory business standing of at least two years. All firms, business establishments, including high-volume retail/wholesale traders, professionals, and self-employed persons, including medical practitioners, contractors, etc.
Age of the Applicant
Maximum age of the applicant at loan maturity: 75 Years.
Type of Loan
Term Loan.
Quantum of Loan
- Minimum: Above Rs. 10.00 lakh
- Maximum: Rs. 200.00 lakh
Margin
- 25% of Total Cost of Plant & Machinery/Equipment, etc.
- 40% of Total Cost of Construction/modernization.
Security
Primary Security:
- Hypothecation of assets i.e., Plant & Machinery, Equipment, etc., created out of Bank finance.
- Mortgage of Business Premises with existing/future construction thereon, in case the loan has been availed for Construction/Modernization of Business Premises, Factory, Offices, Shop, Godown, etc.
Collateral Security:
Mortgage of immovable property.
Guarantee
- Third-party Guarantee of two persons of sound net means, acceptable to the Bank & good for the loan amount including Mortgagor (in case Mortgagor is other than Borrower/partners/directors).
- Personal guarantee of promoter/directors of the company in case of companies, or Personal Guarantee of partners of the firm in case of partnership concerns.
Repayment
Maximum tenure will be 120 months, including the moratorium period.
Processing Charges
0.50% of the loan amount + Applicable GST
*Conditions Apply